Where I would Invest

If I were to invest this summer I would invest in the inner loop of Houston.  More particularly I would invest in a residential single family detached property in the Montrose, Midtown, Rice, or Heights area.  These are young, hip areas where people are willing to take on roommates and pay high rent to live close to work.  Looking at market trends these areas are booming and by putting down a reasonable down payment (assuming I had the money) and renting the property out, all expenses would be covered.  There is definitely a high demand for housing in the area.  These inner city neighborhoods have become increasingly popular with the rising gas prices, terrible traffic and booming economy of Houston.  I know that I am willing to pay a lot in rent in order to live close to my work.  Aside from 2009, right after the housing market crash, property values have increased significantly in these areas and apartment values trends show increases across the board.  Aside from the income from rent covering all costs, in 30 years you will be able to turn around and sell the property for 2 if not 3 times what you paid for it. This link, Neighborhood Information Finder, provides a graph showing how property value has increased in Montrose through the years.

The Houston property values (especially inner city) have historically increased.  For example, though this is technically not Houston, my grandfather bought a house in Bellaire for $80,000 in the 70’s and turned around and sold it for $600,000 in the 90’s.  The value of location is everything, and living near your work is such a contribution to quality of life that we can count on inner city property residential property to continue to grow in value.